What is the significance of Section 15.2 in relation to the Gold Star franchisee's de-identification obligations?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
OR EXPIRATION.**
- 15.1 De-Identification; Wind-Down of Business. Upon the termination or expiration of this Agreement, or upon the permanent closing or abandonment of the Store or the Business, the following provisions shall apply:
- 15.1.1 All rights, privileges and licenses granted by the COMPANY to FRANCHISEE will immediately cease, be null and void, and of no further force and effect, and all such privileges and licenses will immediately revert to the COMPANY.
- 15.1.2 FRANCHISEE shall immediately discontinue the use of the System and the Marks. All rights granted herein with respect to the Marks and System shall thereupon be deemed canceled and terminated.
- 15.1.3 Unless FRANCHISEE receives written notice of the COMPANY's exercise of its options set forth in Section 15.2 below, after thirty (30) days have elapsed since the effective date of termination, FRANCHISEE shall immediately remove the Marks from all buildings, signs, fixtures and furnishings, and within thirty (30) days' after written notice from the COMPANY, alter and paint all structures and other improvements maintained pursuant to this Agreement a design and color which is basically different from the COMPANY's authorized building design and painting schedule and otherwise assist COMPANY in every way possible to bring about a complete and effective wind-down and de-identification of the Business.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Section 15.2 is referenced within the context of the franchisee's obligations for de-identification and winding down the business upon termination or expiration of the franchise agreement. Specifically, after termination or expiration, the franchisee must discontinue using the Gold Star system and marks. However, if the franchisee receives written notice that Gold Star is exercising its options under Section 15.2, the franchisee must complete the de-identification requirements as directed by Gold Star.
In practical terms, this means that a franchisee's responsibilities for removing Gold Star branding and altering the appearance of the premises after the agreement ends are subject to Gold Star's specific instructions if the franchisor chooses to exercise its rights as outlined in Section 15.2. The franchisee must wait 30 days after termination to begin de-identification unless Gold Star provides written notice to proceed earlier or with specific instructions.
This clause gives Gold Star some control over how quickly and thoroughly a former franchisee removes all traces of the brand from a location. It is important for prospective franchisees to understand what options Gold Star has under Section 15.2, as this will directly impact their obligations and costs associated with de-identifying the business after the franchise agreement concludes.